UniFirst reported third-quarter fiscal 2026 results with consolidated revenues of $634.4 million, up 3.9% year-over-year, and net income of $19.9 million, or diluted EPS of $1.09. Operating income was $23.0 million and Adjusted EBITDA was $82.6 million for the quarter, with an adjusted EBITDA margin of 13.0%. Results included approximately $20.7 million of transaction-related costs tied to the proposed merger with Cintas and Key Initiative costs of about $5.2 million.

Financial Highlights

  • Revenue: $634.4 million for the third quarter ended May 30, 2026, up 3.9% from $610.8 million a year earlier.
  • Operating income: $23.0 million for the quarter (operating margin 3.6%).
  • Net income: $19.9 million for the quarter; diluted earnings per share: $1.09.
  • Adjusted EBITDA: $82.6 million for the quarter; Adjusted EBITDA margin: 13.0%.
  • Cash and short-term investments: $168.9 million; no long-term debt outstanding as of May 30, 2026.

Business Highlights

  • Core segment performance: Uniform & Facility Service Solutions revenues increased 3.9% to $575.7 million; organic growth was 3.6% excluding acquisitions and FX.
  • Customer trends: Solid new customer account acquisitions and improving customer retention rates during the quarter.
  • Segment margins impacted by initiatives: Uniform & Facility Service Solutions operating margin declined to 3.4% (Adjusted EBITDA margin 13.4%) with Key Initiative and transaction-related costs reducing operating margin by 4.5% in the quarter.
  • Other operations: First Aid & Safety Solutions and Other (including nuclear services) showed growth—Other revenues up 4.4% with strong performance in European operations offset by a wind-down of a large refurbishment project and fewer reactor outages.
  • Corporate actions: UniFirst entered a definitive merger agreement with Cintas; shareholders approved the merger on June 11, 2026, and the transaction is undergoing FTC review with a second request received—expected to close in second half of calendar 2026 subject to approvals and customary conditions.

Original SEC Filing:

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